TaxTMI 
TaxTMI 
2004 (11) TMI 603
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....nbsp; Credit Balance 01.0496 Opening Balance 25,125.00 9.4.96 To bill No. 2205 1,260.00 10.4.96 To Bill No. 2208 1,510.00 12.04.96 To Bill No. 2211 &nb....
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....le was 25,125/- whereas respondent has acknowledged the liability of Rs. 20,840/- in its balance sheet, it is not necessary to go into this question as I am of the opinion that the petition filed by the petitioner against the respondent is time barred and therefore can not be entertained. From the particulars extracted above, it is clear that the last payment was made on 17th April, 1996. However, the present petition was filed on 26th November, 1999. It is admittedly beyond three years of the said transaction which is the limitation period prescribed under the Limitation Act even if the petitioner relies upon the Balance Sheet of the respondent, that is for the year ending 31st March, 1996. However, counsel for the petitioner submitted tha....
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....the company for the year 1995-96. The auditors while preparing the final account as well as balance sheet, naturally, looked into the books of accounts of the respondent company for this year i.e., 1995-96 (1.4.95 to 31.3.96). It is for this reason that statement of affairs reflected in the final accounts is for the aforesaid period and the balance sheet is as on 31st March, 1996. Merely because the report of the auditor is dated 27th March, 1996, it would not amount to acknowledgment by the auditors of the debt existing even on 27.11.1996 as well. This position would become obvious by giving an illustration. If the position of debtors and of creditors undergo change after 31.3.96 and before 27.11.1996, that would not be reflected in the ba....